Hello, I have an SMSF and some gold coins bought from the Perth Mint several years ago. New rules introduced a year or so ago stipulate that gold coins held by an SMSF must be kept away from the owner's premises (eg, a safe deposit box), insured and "valued" (to prove they haven't been disposed of). At present I have the coins well-hidden on my premises and covered under my home insurance. Is anyone in the same situation as me or have they moved their coins to a location other than their home in order to comply with the new SMSF regulations? Also, has anyone found an affordable insurer, safe deposit box and "valuer"? Many thanks for any help you may be able to offer!
Actually that's more likely the rule for collectible coins - however there's a very badly worded Q&A on the ATO website that's in conflict with the actual legislation as to what constitutes a collectible as opposed to bullion.
You can if you have been doing so with an existing SMSF. Newly formed SMSF's aren't allowed. There is a cut-over date for existing SMSF's. Beyond that date no SMSFs are supposed to store assets at home. Does anyone remember the date when existing SMSF's are no longer allowed to store assets at home?
Thanks for your input. So who would insure gold coins in a safe deposit box at a bank and, for how much?
Wouldn't you put in your SMSF name so that the SMSF can pay for it? If it's in your own name you have to pay for it out of personal $$$.
I had to transfer my SDB in the last year 2011/2012 return. Don't know about the meeting, I think you've got me mixed up with LunarDragon
Ops.... owl and dragon they don't look the same right? hee hee (sorry about that mate) I call the dragon up. Since last year? Ops, I didn't do it last year, I just stay put into safe deposit box, didn't provide detail and where even... I think maybe that was my first year of the SMSF.
Hi again Lunarowl, Thanks for your reply. The reason why I asked about insurance is because my auditor stated that it must be insured otherwise you mightn't comply with the ATO's SMSF regulations and if it were to go "missing", you could be liable for heavy fines. Also, the insurer would have to verify each year (for the annual audit) that the number of gold coins in the safe deposit box had not diminished via some "personal" (ie., not SMSF) withdrawals. I read somewhere (it could've been on this forum) that insurance can be pretty high, in fact so high that it would cancel most of the year's (hoped for) appreciation in the price of gold! So if anyone has any information on insurance, it would be a might big help.
Try http://www.guardianvaults.com.au, they have vault with insurance option. They are located in Sydney and Melbourne the first 10,000 insurance are included. Each additional 10K is $30 annual fee.
@ gassit I'd be asking your auditor to show you clearly where the requirement that there MUST be insurance comes from... or changing auditor
I have had metals in a SMSF and dont have them insured and nor do I stipulate where they are stored. Honestly the ATO etc just look to justify their own existence with ever complicated rules and regulations. The ATO will gladly let you put 100% of your SMSF money into a company on the brink of bankruptcy but not gold thats uninsured? Thats like the ATO having rules that a SMSF can only invest money in a stock if that SMSF purchases put options in case that stock falls in price (effectively insuring against loss).
Thanks everyone. Will post some more info later on and get this ATO PITA sorted out somehow. Or, at worse, sell the gold coins (which I really hate to do) and buy some quality gold shares in the US or Canada. Stay tuned...
Looking forward to it. I was wondering myself before as well how I can buy overseas shares? Which trading platform provide this kind overseas facilities? Many thanks
